Weekend Warrior

Concerns of potential China increasing interest rates delivered a poor showing for US indexes. Before the open the Shanghai composite dropped more than 5%. Although our markets did drop, they finished off the lows. However, the markets leaders were wounded. AAPL BIDU among others were weak. When the leaders drop, caution is the name of the day. A look at the daily S & P 500 chart shows a cup with high handle base developing. Is this index headed to its 50 day MA near 1160? Only time will tell.

Most charts seem extended here. Stocks are not showing specific buy points for the most part. They are trying to consolidate their recent gains or drifting back toward moving averages. The all important 50 day moving average is where the weakness usually stops. A number of stocks that can get there this week are: HOT @54, JKS @30, TTM @27, MUR @64, NBL @79, SU @33, SUN @37, CVLT @28, INFA @38, INTU @46, QSFT @25, RHT @40, TIBX @18, ORCL @27.75, EMN @75, BAM @29, EMC @21, ARUN @21, AMT @51, DD @45.75, CHRW @70, EXPD @48, UNP @85, CLF @65, VALE @31, CAT @78, JOYG @70, VIT @33.75, COST @63, NKE @80, MT @33.75, IBN @51, BBD here, OVTI @24, SWKS @21, AXTI @7, AMP @50, CB @57, TRMB @34, PAY @30, BEAV @33, NTGR @28, TKR @40, SIAL @62, KBR @25, CCL @40. Stocks which may show support at their 200 day MA are: RIG @65, CNX @40, VNO @80, CNI @61, SWK @58, DISCA @38. See how these perform at that line of support. If they bounce off of it in strong volume its safe to buy. If that line gives consider shorting it.

Some stocks which are showing buy points are: ANN @24.92, a cup with handle. TROW @60.62, a cup with high handle. As long as NVDA can stay above its 200 day MA @13, stay long. GPS above 21, put in a buy stop above its recent consolidation, and 200 day MA. UPL is holding its gains above its 200 day as its peers SWN RRC are faltering there. Something to keep an eye on.

Stocks that showed strong relative strength Friday included JNPR AVGO. Keep an eye on those for tells in those stocks. MSCC had a nice earnings gap up and WFMI recent earnings gap up still intact. SOA which we recently flagged a few weeks ago blasted out of the right side of its base this week. Look for an entry point around 19.75.

VXX had a big move upward in monster volume Friday. I see no reason why in the next week or so it can not gravitate toward its 50 day near 54. Stocks that can be shorted are: OPEN under 62, ARBA under 18.75, CTXS under 63.75. All there 50 day MAs. SQM had a negative outside reversal day 11/9. Put a sell stop in under 49, its 50 day, to short it.

Quick note. I have no opinion on the stock at all but TSLA chart continues to perform well. Regardless of how you feel about Elon Musk he perhaps may be delivering a type of car and profitability that many were skeptical about.

We are now out of RADS as it dropped below its 50 day MA. We are getting real small here as the market direction is a little uncertain here. As always we remain vigilant and have our buy list ready.

The author owns ORCL.